Explain any six points highlighting the utility of accounting standards.
Explain any six points highlighting the utility of accounting standards.
Accounting standards serve the following purposes:
(i) Basis of Preparing Financial Statements: Accounting standards provide the norms or guidelines on the basis of which financial statements should be prepared.
(ii) Uniformity in Accounting Methods: Uniformity in the preparation and presentation of financial statements can be ensured by accounting standards.
(iii) Sense of Confidence in Various Users: Accounting standards create a sense of confidence amongst various users of accounting information.
(iv) Help to Auditors: Accounting standards help auditors the accounts by providing them with standards to judge the financial statements.
(v) Simplifying Accounting Information Accounting standards simplify the accounting Information in financial statements.
(v) Render Reliability to Financial Statements Accounting standards render reliability to financial statements by providing a common platform for the preparation of financial statements.
Accounting standards serve the following purposes:
(i) Basis of Preparing Financial Statements: Accounting standards provide the norms or guidelines on the basis of which financial statements should be prepared.
(ii) Uniformity in Accounting Methods: Uniformity in the preparation and presentation of financial statements can be ensured by accounting standards.
(iii) Sense of Confidence in Various Users: Accounting standards create a sense of confidence amongst various users of accounting information.
(iv) Help to Auditors: Accounting standards help auditors the accounts by providing them with standards to judge the financial statements.
(v) Simplifying Accounting Information Accounting standards simplify the accounting Information in financial statements.
(v) Render Reliability to Financial Statements Accounting standards render reliability to financial statements by providing a common platform for the preparation of financial statements.
